Definitely agree with the "Help to Sell" phrase. The way it is structured attracts many rogue developers to build cheap housing. You buy at a premium and then once you set foot into the flat/house it no longer has that "brand new" tag which instantly devalues the property. I am looking to sell my Help to Buy flat and luckily I am now able to afford via a normal mortgage only route. Highly recommend those considering the Help to Buy route give it a second thought and if it requires you saving for another 3/4 years even to get a normal mortgage it is worth it.
I'm not sure if this was mentioned but another point to consider is that 20% help from gov is not fixed but is based on the property value at the time you want to return it back. So if for example your house price has doubled so is the 20% gov loan.
Very good video. Best piece of info is the fact that help to buy scheme does not forbid from owning properties through ltd company. I actually went through this myself some time ago. Mortgage broker that I knew and had bought my residential HTB prop with refused to help me when I started my ltd company (saying that it would be a breach of the HTB contract, which he didnt even look at). Same happened with the conveyancer I used for my residential who straight told me it is unlawful to own properties through ltd company while having residential using HTB. They were wrong as I contacted HTB who told me that (in writing) owning a property through a ltd company is none of their business and does not vreach the contract that i have with them. They even found the question silly as they have a contract with me as an individual they dont care about what I do with a company.. It is crazy how some experienced practioners can be wrongly informed and can give VERY wrong advice/info. Their loss as I wont be refering them to anyone else and wont be doing any business with them. At least people who see this video wont be fooled.
Thanks for sharing this.. I've been trying to get information regarding whether I can own another property by setting up a company and trolled so many videos with no one mentioning this. I will take this info on board and investigate
Thanks Jamie. I was considering using this to buy a house and get a lodger or two, I didn’t realise that wasn’t allowed. Narrow escape, thanks again 👍🏻
I think this is a helpful scheme as long as the person who is using said scheme is smart with the properties they pick. I think it's better than shared ownership at least.
Help to Buy makes sense in these situations: 1. When you can’t afford to raise 10% deposit to buy a property with a normal mortgage …mostly for non new-build properties which are more realistically valued. 2. When you buy the help to buy property in a good location where the property can’t be devalued overtime - (Buy in a good location) 3. When obtaining a mortgage is difficult, mortgage approval for HTB properties are easier. 4. Try and pay 7-10 % deposit. 5. Recessions don’t happen often 6. You can set up home and start paying mortgage instead of rent 7. You can start paying part of the 20% equity loan from the month you move into the property.
Thank you Jamie to clarify the HELP TO BUY/sell/ to us! 🙏🏻 A year ago when I bought my residential property, my mortgage broker answered my question just like that: You don’t want this, trust me! - Now I know, why! 😀 Thx ☺️
Thanks for all information , Help to buy isn’t best option but i am sure if you are private renters and rent is going up every year this scheme its best option ,try to pay your own mortgage rather than greedy landlords
So I used the HTB scheme to buy a 436500 house with a relatively small deposit (21800 down) at a 1.7% interest rate. And got an 80000 loan from the gov. I could clear this loan in 5 years or invest in more properties (Ltd company) depending on my risk tolerance. I bought the top end of the HTB even though it was significantly under the top end of my mortgability ( banks were happy to lend 650ish). My current mortgage repayment is 16% of my household take-home income. I think this scheme is great if you are not from a home-owning family and have managed to gain a high salary relatively early in your career. And don't have the financial backing to have the lump sum lying around. But if your using it to stretch your ongoing affordability ( if you could only normally afford 300k for example but buy at 360k) your going to be in a world of trouble when the market swings. That being said I don't think it's a good idea to continue the scheme as it leads to higher house prices and only benefits thoughts like myself who would have got on the housing ladder a few years later rather than people who can't get on it without help.
I’m personally using a Lifetime ISA. I’ve been able to invest this at the same time as well which has been great! Over 18 months I’ve turned my £8k investment (2x £4k annual limit) into £13k so far. P.s. Jamie you mention @ 1:45 approx. Stamp duty isn’t included for first time buyers. As I’m sure you already know 😉
How is this Help to Buy scheme different from the latest 5% only deposit scheme introduced by the govt.? Is it that the former applies to new builds only while the latter includes old builds too?
Have you got any advice or a video on Shared Ownership properties? I currently own a 50% share in my property and battling with the prospect of buying the other half. Is it worth it? Is there any ways to take advantage of shared ownership? Thanks.
The property market should be left alone with no government interference, it simply inflates prices and speeds up the property cycle. Oh yeh and another thing on HTB loans is that you cannot overpay in increments, it has to be either half or all of it!
You can still use HTB if you've acquired a property through a Ltd. I'm guessing this doesn't work the other way round, HTB purchase and then company BTL purchase
I'm not sure about the 'have to be a first time buyer' part. I bought a house in a previous relationship and then sold that house when the relationship ended, and was able to buy a new house on the help to buy scheme
prices in just renting is High..at the end of day the money what's going on renting is dead end money and cud be better on rent to buy new scheme on a new build..and the landlord is making a big profit on renting...
let's say the flat's value is £540k in London, you put down 5% as a deposit (27k), get 40% from government equity loan and finance the rest with bank mortgage. How is this possible that you fall into negative equity? If you do, it means that your flat's value will have to drop by at 44%. Is is even possible in London? Thanks :)
Great question… you still owe the money so anything that’s not yours is essentially a debt to you. In this example. You have 95% debt. Is a risk that’s likely to come to fruition? NO! But always something to be aware of 😊
Hey Jamie, great video! QUESTION: When you buy the residential property, and you decide to move out in 1-2 years to the new residential property and rent to old one out. What's the procedure? Do you need to negotiate the mortgage rates or? You mentioned "consent to let" how does that affect us, and what are the requirements? Thank you!
My daughter is living at home still but would like to do this scheme and do her first BRR Would this act as a step ladder to investment for young people
Hi Jamie thank you for your videos. Do you think I can buy a BLT as a limited company and purchase a shared ownership property in my personal name? I look forward to your reply.
i have an important question if you can respond please - if i repay my full HTB equity loan and the property value goes up by 20%, do i need to pay anything to the gov in relation to that increase AFTER the equity loan is completely paid off?
The thing that worried me most about the scheme I was on was that the government sold my loan to a private company, before the 5 years was up. I'm sure that after those 5 years the interest rate quoted (that you have to pay after the initial 5 years) would be significantly higher than I expected when I signed up. Was always my plan to pay it off before hand and its gone now so happy days. Only lost some of my equity gains but wouldn't have been able to buy otherwise. Bad for investors, great for new families that don't care.
You didn't mention that the stake the Government holds in the property stays at 20% ... so if you do remortgage to pay it off after 5 years and not pay any interest.... You owe them whatever 20% of the property is after 5 years!! This can cost WAY more than getting the 20% interest free for a bit. Of course the Government are gonna do this without a way to make money from it
I was very close to going through with a purchase on this scheme earlier this year but I pulled out. What you didn't mention that in London the HTB scheme is 40%. I almost bought a one bed flat in a shit hole part of London. I was put off as I agreed £335k (with a discount) but older flats in the same area were selling at £240k, they were in much poorer condition but i didn't feel that a new flat with similar sq.m was not worth an extra £100k.
You are forgetting one very very significant caveat - the scheme only applies to new builds, which tbh aren't great value and you are tied to paying ridiculous amounts of annual fees for upkeep of the "neighbourhood"
@@JamieYork I tried pasting in the link from the UK government website but YT automatically removes it for some reason. The new build rule still holds. Where does it say that it applies to old and new?
Please tell me it isn’t true, I’m in a new build using help to buy and what I could’ve got if not new would’ve been twice the size of this one. I was told by my mortgage advisor that it’s new builds only. Completed December 2019
No a LISA is a savings account which can be used in isolation or collaboration with this scheme with the aim of giving you bonuses from the government to save up for your first property (or retirement)
What about if you are in a couple and only one of you are a first time buyer? I own a property and my partner doesn't, we need a bigger place (baby on the way!) and wondering if her being a first time buy would allow us to take advantage of the help to buy scheme
@@JamieYork there are 3 cost to get out of the scheme, regardless of how you pay it off cash/remortgage/sell. 1. survey from a H2B accredited surveyor 2. Fees paid to the H2B agency. 3 Solicitors to fees....not much change from £1500.
Definitely agree with the "Help to Sell" phrase. The way it is structured attracts many rogue developers to build cheap housing. You buy at a premium and then once you set foot into the flat/house it no longer has that "brand new" tag which instantly devalues the property. I am looking to sell my Help to Buy flat and luckily I am now able to afford via a normal mortgage only route. Highly recommend those considering the Help to Buy route give it a second thought and if it requires you saving for another 3/4 years even to get a normal mortgage it is worth it.
I'm not sure if this was mentioned but another point to consider is that 20% help from gov is not fixed but is based on the property value at the time you want to return it back. So if for example your house price has doubled so is the 20% gov loan.
Very good video. Best piece of info is the fact that help to buy scheme does not forbid from owning properties through ltd company. I actually went through this myself some time ago. Mortgage broker that I knew and had bought my residential HTB prop with refused to help me when I started my ltd company (saying that it would be a breach of the HTB contract, which he didnt even look at). Same happened with the conveyancer I used for my residential who straight told me it is unlawful to own properties through ltd company while having residential using HTB. They were wrong as I contacted HTB who told me that (in writing) owning a property through a ltd company is none of their business and does not vreach the contract that i have with them. They even found the question silly as they have a contract with me as an individual they dont care about what I do with a company..
It is crazy how some experienced practioners can be wrongly informed and can give VERY wrong advice/info. Their loss as I wont be refering them to anyone else and wont be doing any business with them.
At least people who see this video wont be fooled.
Hoping that people will read this to understand that they need to make their own investigation
Thanks for sharing this.. I've been trying to get information regarding whether I can own another property by setting up a company and trolled so many videos with no one mentioning this. I will take this info on board and investigate
Thanks Jamie. I was considering using this to buy a house and get a lodger or two, I didn’t realise that wasn’t allowed. Narrow escape, thanks again 👍🏻
Thanks a lot for all of your videos. Every one of them let me learn more about the UK property market and rules. Truly appreciated.
Our pleasure!
I think this is a helpful scheme as long as the person who is using said scheme is smart with the properties they pick. I think it's better than shared ownership at least.
Help to Buy makes sense in these situations:
1. When you can’t afford to raise 10% deposit to buy a property with a normal mortgage …mostly for non new-build properties which are more realistically valued.
2. When you buy the help to buy property in a good location where the property can’t be devalued overtime - (Buy in a good location)
3. When obtaining a mortgage is difficult, mortgage approval for HTB properties are easier.
4. Try and pay 7-10 % deposit.
5. Recessions don’t happen often
6. You can set up home and start paying mortgage instead of rent
7. You can start paying part of the 20% equity loan from the month you move into the property.
How do you start paying back the loan from when you move in?
Thank you Jamie to clarify the HELP TO BUY/sell/ to us! 🙏🏻
A year ago when I bought my residential property, my mortgage broker answered my question just like that: You don’t want this, trust me! - Now I know, why! 😀
Thx ☺️
Szia, elkerhetnem az elerhetosegit a mortgage brokerednek? :)
Thanks for all information , Help to buy isn’t best option but i am sure if you are private renters and rent is going up every year this scheme its best option ,try to pay your own mortgage rather than greedy landlords
So I used the HTB scheme to buy a 436500 house with a relatively small deposit (21800 down) at a 1.7% interest rate. And got an 80000 loan from the gov. I could clear this loan in 5 years or invest in more properties (Ltd company) depending on my risk tolerance. I bought the top end of the HTB even though it was significantly under the top end of my mortgability ( banks were happy to lend 650ish). My current mortgage repayment is 16% of my household take-home income. I think this scheme is great if you are not from a home-owning family and have managed to gain a high salary relatively early in your career. And don't have the financial backing to have the lump sum lying around. But if your using it to stretch your ongoing affordability ( if you could only normally afford 300k for example but buy at 360k) your going to be in a world of trouble when the market swings. That being said I don't think it's a good idea to continue the scheme as it leads to higher house prices and only benefits thoughts like myself who would have got on the housing ladder a few years later rather than people who can't get on it without help.
Oh look it's Jamie again! He's kicking ass in sharing valuable property related information.... again 👍👊
Very good video, thank you for explaining it so concisely.
Unless I missed it isn’t a big disadvantage that it has to be a New Build to use this scheme, which are already listed at a 10-20% premium.
Bought mine 4 years ago. Paid 220k, now worth 290k. You do the maths :)
You said at the start about stamp duty, just a reminder most first time buyers won't pay stamp duty as there is a higher threshold
With the current market very easy to hit that threshold especially in the South East
Yes up to £300k
I’m personally using a Lifetime ISA. I’ve been able to invest this at the same time as well which has been great! Over 18 months I’ve turned my £8k investment (2x £4k annual limit) into £13k so far.
P.s. Jamie you mention @ 1:45 approx. Stamp duty isn’t included for first time buyers. As I’m sure you already know 😉
You do pay stamp duty even as a first time buyer. If you go over 300k
You can use help to buy in conjunction with the lifetime isa
@@mrminiature11 I thought you couldn't apply both bonuses?
How is this Help to Buy scheme different from the latest 5% only deposit scheme introduced by the govt.? Is it that the former applies to new builds only while the latter includes old builds too?
You don’t own the government anything, you have a regular mortgage with the bank
Have you got any advice or a video on Shared Ownership properties? I currently own a 50% share in my property and battling with the prospect of buying the other half. Is it worth it? Is there any ways to take advantage of shared ownership? Thanks.
The property market should be left alone with no government interference, it simply inflates prices and speeds up the property cycle.
Oh yeh and another thing on HTB loans is that you cannot overpay in increments, it has to be either half or all of it!
You can still use HTB if you've acquired a property through a Ltd. I'm guessing this doesn't work the other way round, HTB purchase and then company BTL purchase
Yes. You can still do that 😊
@@JamieYork wow, thanks for sharing
I'm not sure about the 'have to be a first time buyer' part. I bought a house in a previous relationship and then sold that house when the relationship ended, and was able to buy a new house on the help to buy scheme
Weird. Did you mention that when you bought the HTB house? They clearly told me you shouldn't have owned anything in the past.
@@alexandra9944 yer the women I did it all through was a family friend and she knew my situation
prices in just renting is High..at the end of day the money what's going on renting is dead end money and cud be better on rent to buy new scheme on a new build..and the landlord is making a big profit on renting...
let's say the flat's value is £540k in London, you put down 5% as a deposit (27k), get 40% from government equity loan and finance the rest with bank mortgage. How is this possible that you fall into negative equity? If you do, it means that your flat's value will have to drop by at 44%. Is is even possible in London? Thanks :)
Great question… you still owe the money so anything that’s not yours is essentially a debt to you. In this example. You have 95% debt. Is a risk that’s likely to come to fruition? NO! But always something to be aware of 😊
@@JamieYork thanks for the response. It is spot on. Much appreciate it!
Hey Jamie, great video! QUESTION: When you buy the residential property, and you decide to move out in 1-2 years to the new residential property and rent to old one out. What's the procedure? Do you need to negotiate the mortgage rates or? You mentioned "consent to let" how does that affect us, and what are the requirements? Thank you!
Would like a video on this looking to do it myself in a year or so. Cheers jamie
If I own the property outright (no mortgage ever taken in my life), am I eligible for HTB?
What’s better help to buy or lifetime ISA?
It depends on other aspects too
Am sure even after you have paid the government loan they own percentage in the house if you go to sell it ?? Correct me if am wrong please
Nope, pay them back and you’re good to go
My daughter is living at home still but would like to do this scheme and do her first BRR
Would this act as a step ladder to investment for young people
It is yes!
Hi Jamie thank you for your videos. Do you think I can buy a BLT as a limited company and purchase a shared ownership property in my personal name? I look forward to your reply.
RPI at 14% makes this even worse. Can you imagine paying 16% interest?
Thank for the video.
i have an important question if you can respond please - if i repay my full HTB equity loan and the property value goes up by 20%, do i need to pay anything to the gov in relation to that increase AFTER the equity loan is completely paid off?
No you don't. Once your equity loan is fully paid, the govt no longer has any stake on your property. So the said increase is yours and yours only.
@@jamesa8911 thanks!
So you cant do a rent to room scheme or can you?
You can rent one room to a lodger
The thing that worried me most about the scheme I was on was that the government sold my loan to a private company, before the 5 years was up. I'm sure that after those 5 years the interest rate quoted (that you have to pay after the initial 5 years) would be significantly higher than I expected when I signed up.
Was always my plan to pay it off before hand and its gone now so happy days. Only lost some of my equity gains but wouldn't have been able to buy otherwise.
Bad for investors, great for new families that don't care.
Help to sell definitely. It's just lined many a person's pockets and hindered the people it was supposed to help
You didn't mention that the stake the Government holds in the property stays at 20% ... so if you do remortgage to pay it off after 5 years and not pay any interest.... You owe them whatever 20% of the property is after 5 years!! This can cost WAY more than getting the 20% interest free for a bit. Of course the Government are gonna do this without a way to make money from it
I was very close to going through with a purchase on this scheme earlier this year but I pulled out.
What you didn't mention that in London the HTB scheme is 40%.
I almost bought a one bed flat in a shit hole part of London. I was put off as I agreed £335k (with a discount) but older flats in the same area were selling at £240k, they were in much poorer condition but i didn't feel that a new flat with similar sq.m was not worth an extra £100k.
What happens if you are on benefits
If you pay back the loan in full before the 5 years, when you decide to sell the property do you have to give a percentage back to the government?
If the loan has been paid off then no you don't :)
You are forgetting one very very significant caveat - the scheme only applies to new builds, which tbh aren't great value and you are tied to paying ridiculous amounts of annual fees for upkeep of the "neighbourhood"
No it’s not mate… that’s oldddd. It’s for any property now for a first time buyer
@@JamieYork I tried pasting in the link from the UK government website but YT automatically removes it for some reason. The new build rule still holds. Where does it say that it applies to old and new?
Please tell me it isn’t true, I’m in a new build using help to buy and what I could’ve got if not new would’ve been twice the size of this one. I was told by my mortgage advisor that it’s new builds only. Completed December 2019
@@JamieYorkOMG! Really ? Is it not just new build ?
I thought help to buy stopped a year or two ago now 🤔
Is this the same as a LISA
No a LISA is a savings account which can be used in isolation or collaboration with this scheme with the aim of giving you bonuses from the government to save up for your first property (or retirement)
lol why did you say "because" in that way at 8:06
Jamie!!!!!! Thank you so much for this video!!!!!!
What about if you are in a couple and only one of you are a first time buyer?
I own a property and my partner doesn't, we need a bigger place (baby on the way!) and wondering if her being a first time buy would allow us to take advantage of the help to buy scheme
I was in same boat. You will only be able to use your partners income.
Did you not learn nothing from this video it’s help to sell scheme STAY AWAY !!!!
I died when You said you have limited to your seminar due to the software you used. Which software is that and what world are you living in? 😂
You mean when I do a seminar? Usually go to webinar, which use different paid packages 👍
Eligibility not illegibility
I’ve used help to buy and you miss out one key point….the cost to get out of the scheme when you want to leave it.
It depends how song you get out of it, right?
@@JamieYork there are 3 cost to get out of the scheme, regardless of how you pay it off cash/remortgage/sell. 1. survey from a H2B accredited surveyor 2. Fees paid to the H2B agency. 3 Solicitors to fees....not much change from £1500.
Debt debt debt...
I'd rather live in the woods.